Tahseen Sayed Director, Caribbean 28-Jul-2020 Latin America and the Caribbean Region Dr. The Honourable Dr. Roosevelt Skerrit Prime Minister and Minister of Finance, Resilience, Economic Affairs, Investments, Planning, Sustainable Development, Telecommunications and Broadcasting Office of the Prime Minister Government Headquarters 6th Floor, Financial Centre Kennedy Avenue, Roseau Commonwealth of Dominica Re: IDA Credit 6641-DM (DOMINICA – Caribbean Air Transport Connectivity Project) Additional Instructions: Disbursement and Financial Information Letter. Dear Prime Minister: I refer to the Financing Agreement between Commonwealth of Dominica (the “Recipient”) and the International Development Association (the “Association”) for the above-referenced Project. The General Conditions, as defined in the Financing Agreement, provide that the Recipient may from time to time request withdrawals of Credit amounts from the Credit Account in accordance with the Disbursement and Financial Information Letter, and such additional instructions as the Association may specify from time to time by notice to the Recipient. The General Conditions also provide that the Disbursement and Financial Information Letter may set out Project specific financial reporting requirements. This letter constitutes such Disbursement and Financial Information Letter (“DFIL”), and may be revised from time to time. I. Disbursement Arrangements, Withdrawal of Credit Funds, and Reporting of Uses of Credit Funds. The Disbursement Guidelines for Investment Project Financing, dated February 2017, (“Disbursement Guidelines”) are available in the Association’s public website at https://www.worldbank.org and its secure website “Client Connection” at https://clientconnection.worldbank.org. The Disbursement Guidelines are an integral part of the DFIL, and the manner in which the provisions in the guidelines apply to the Credit is specified below. (i) Disbursement Arrangements  General Provisions (Schedule 1). The table in Schedule 1 sets out the disbursement methods which may be used by the Recipient, and conditions, information on registration of authorized signatures, processing of withdrawal applications (including minimum value of applications and processing of advances), instructions on supporting documentation, and frequency of reporting on the Designated Account. (ii) Electronic Delivery. Section 11.01 (c) of the General Conditions. The Association may permit the Recipient to electronically deliver applications (with supporting documents) through the Association’s web-based portal (https://clientconnection.worldbank.org) “Client Connection”. This option may be effected if the officials designated in writing by the Recipient who are authorized to sign and deliver Applications have registered as users of “Client Connection”. The designated officials may deliver Applications electronically by completing the Form 2380, which is accessible through “Client Connection”. By signing the Authorized Signatory Letter, the Recipient confirms that it is authorizing such persons to accept Secure Identification Credentials (SIDC) and to deliver the Applications and supporting documents to the Association by electronic means. The Recipient may continue to exercise the option of preparing and delivering Applications in paper form. The Association reserves the right and may, in its sole discretion, temporarily or permanently disallow the electronic delivery of Applications by the Recipient. By designating officials to use SIDC and by choosing to deliver the Applications electronically, the Recipient confirms through the authorized signatory letter its agreement to: (a) abide by the Terms and Conditions of Use of Secure Identification Credentials in connection with Use of Electronic Means to Process Applications and Supporting Documentation, available in the Association's public website at https://worldbank.org and “Client Connection”; and (b) to cause such official to abide by those terms and conditions. II. Financial Reports and Audits. (i) Financial Reports. The Recipient must prepare and furnish to the Association not later than forty-five (45) days after the end of each calendar quarter, interim unaudited financial reports (“IFR”) for the Project covering the quarter. (ii) Audits. Each audit of the Financial Statements must cover the period of one fiscal year of the Recipient, commencing with the fiscal year in which the first withdrawal was made. The audited Financial Statements for each such period must be furnished to the Association not later than six (6) months after the end of such period. III. Other Information. For additional information on disbursement arrangements, please refer to the Loan Handbook available on the Association’s website (http://www.worldbank.org/) and “Client Connection”. The Association recommends that you register as a user of “Client Connection”. From this website you will be able to prepare and deliver Applications, monitor the near real-time status of the Credit, and retrieve related policy, financial, and procurement information. For more information about the website and registration arrangements, please contact the Association by email at clientconnection@worldbank.org. If you have any queries in relation to the above, please contact José C. Janeiro, Senior Finance Officer at jjaneiro@worldbank.org, with copy to Lélia Werner, Finance Analyst at lwerner@worldbank.org using the above reference. Yours sincerely, ______________________________ Tahseen Sayed Director, Caribbean Latin America and the Caribbean Region Attachments 1. Form of Authorized Signatory Letter 2. Interim unaudited Financial Report (IFR) With copies: Dr. The Honourable Dr. Roosevelt Skerrit Prime Minister and Minister of Finance, Resilience, Economic Affairs, Investments, Planning, Sustainable Development, Telecommunications and Broadcasting Office of the Prime Minister Government Headquarters 6th Floor, Financial Centre Kennedy Avenue, Roseau Commonwealth of Dominica e-mail: pmoffice@dominica.gov.dm Ms. Missi Henderson Permanent Secretary Office of the Prime Minister Government Headquarters 6th Floor, Financial Centre Kennedy Avenue, Roseau Commonwealth of Dominica e-mail: psopm@dominica.gov.dm Schedule 1 : Disbursement Provisions Basic Information Country Commonwealth of Dominica Closing Date Section III.B.2. of Schedule 2 to the Recipient Commonwealth of Dominica Financing Agreement. Credit Name of the Project Caribbean Regional Air Transport Disbursement Four months after the closing date. Number Connectivity Project Deadline Date Subsection 3.7 ** Disbursement Methods and Supporting Documentation Disbursement Methods Methods Supporting Documentation Section 2 (**) Subsections 4.3 and 4.4 (**) Direct Payment Yes Copy of records Reimbursement Yes Interim unaudited Financial Report (IFR), including a list of payments against contract for which the Bank’s prior review is required, in the format provided in Attachment 2 of the DFIL Designated Account Yes Interim unaudited Financial Report (IFR), including a list of payments against contract for which the Bank’s prior review is required, in the format provided in Attachment 2 of the DFIL Special Commitments Yes Copy of Letter of Credit Designated Account (Sections 5 and 6 **) Type Segregated Ceiling Variable Financial Institution - National Bank of Dominica USD Currency Name Frequency of Reporting Quarterly Six month cash flow forecast as per the Amount Subsection 6.3 (**) quarterly IFRs Minimum Value of Applications (subsection 3.5) The minimum value of applications for Direct Payment and Special Commitment is USD 100,000 equivalent. Authorized Signatures (Subsection 3.1 and 3.2 **) The form for Authorized Signatories Letter is provided in Attachment 1 of this letter Withdrawal and Documentation Applications (Subsection 3.3 and 3.4 **) Authorized Signatures: A letter in the Form attached (Attachment 1) should be furnished to the Association at the address indicated below providing the name(s) and specimen signature(s) of the official(s) authorized to sign Applications: The World Bank 1818 H Street, N.W. Washington, DC 20433, USA Attention: Ms. Tahseen Sayed, Country Director Applications: Completed Applications for withdrawal, together with supporting documents, should be provided t hrough the Association’s Client Connection, web-based portal, following the instructions for electronic delivery. In the case the Recipient does not have internet access, the Association may permit the delivery of Applications for withdrawal, together with supporting documents, to the following address: Banco Mundial SCN Quadra 02, Lote A Ed. Corporate Financial Center, 7º andar 70712-900, Brasília, D.F. – Brazil Attention: Loan Operations Additional [Information][Instructions] Not Applicable Other Not Applicable ** Sections and subsections relate to the “Disbursement Guidelines for Investment Project Financing ”, dated February 2017. [Attachment 1 – Form of Authorized Signatory Letter] 11/ [Letterhead] Ministry of Finance [Street address] [City] [Country] [DATE] International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Re: Credit No. 6641-DOM (Caribbean Regional Air Transport Connectivity Project) Attention: Tahseen Sayed, Country Director I refer to the Financing Agreement (“Agreement”) between the International Development Association (the “Association”) and Commonwealth of Dominica (the “Recipient”), dated _______, providing the above Credit. For the purposes of Section 2.03 of the General Conditions as defined in the Agreement, any 1[one] of the persons whose authenticated specimen signatures appear below is authorized on behalf of the Recipient to sign applications for withdrawal [and applications for a special commitment] under this Credit. For the purpose of delivering Applications to the Association, including by electronic means, 2[each] of the persons whose authenticated specimen signatures appears below is authorized on behalf of the Recipient, acting 3[individually] 4[jointly], to deliver Applications, and evidence in support thereof on the terms and conditions specified by the Association. This Authorization replaces and supersedes any Authorization currently in the Association records with respect to this Agreement. 1 Instruction to the Recipient: stipulate if more than one person needs to sign Applications, and how many or which positions, and if any thresholds apply. Please delete this footnote in final letter that is sent to the Association. 2 Instruction to the Recipient: stipulate if more than one person needs to jointly sign Applications, if so, please indicate the actual number. Please delete this footnote in final letter that is sent to the Association. 3 Instruction to the Recipient: use this bracket if any one of the authorized persons may sign; if this is not applicable, please delete. Please delete this footnote in final letter that is sent to the Association. 4 Instruction to the Recipient: use this bracket only if several individuals must jointly sign each Application; if this is not applicable, please delete. Please delete this footnote in final letter that is sent to the Association. [Name], [position] Specimen Signature: ____________________ [Name], [position] Specimen Signature: ____________________ [Name], [position] Specimen Signature: ____________________ Yours truly, / signed / ______________ Attachment 2 - Interim unaudited Financial Statements Sources and Uses of Funds Name of Project Sources and Uses of Funds - Amounts in US$ FOR THE PERIOD ENDING XXX Current Period Cummulative Forecast RECEIPTS Actual Budgeted Variance Actual Budgeted Variance Next 6 Months Government World Bank Advance Direct Payment Reimbursement Total Receipts (A) LESS EXPENDITURES Component 1 Component 2 Component 3 Total Expenditures (B) RECEIPTS LESS EXPENDITURES Net Change in Cash (A - B) Foreign Exchange Adjustment CASH BALANCES Opening Cash Balances Designated Account Project Account Total Opening Balance Closing Cash Balances Designated Account Project Account Total Closing Balance Uses of Funds by Category Name of Project Use of Funds by Disbursement Categories - Amounts in US$ FOR THE PERIOD ENDING XXX Categories Current Period Cummulative Amount per Total Allocation Amount Client per legal Actual per IFR Connection Difference Comments agreement 1. Category 1______ 2. Category 2______ 3. Category 3______ Total Uses of Funds by Component Name of Project Use of Funds by Project Components - Amounts in US$ FOR THE PERIOD ENDING XXX Current Period Cummulative Forecast Actual Budgeted Variance Actual Budgeted Variance Component 1 Component 2 Component 3 Total Cash Forecast Name of Project Cash Forecast - Amounts in US$ FOR THE PERIOD ENDING XXX US$ Eligible Expenditures to be financed by the World Bank for the Next 6 Months Less Direct payments to be made by the World Bank Eligible Expenditures to be financed by the World Bank from the Designated Accounts Less: Current Balance in the Designated Account Current Balance in the project account Amount Requested to be Advanced to Designated Account Designated Account Reconciliation DESIGNATED ACCOUNT RECONCILIATION STATEMENT LOAN/CREDIT/NUMBER ______________ ACCOUNT NUMBER ______________ WITH (BANK) __________________________ US$ 1 TOTAL ADVANCED BY WORLD BANK (OR COFINANCIER) 2 LESS: TOTAL AMOUNT DOCUMENTED BY WORLD BANK 3 PRESENT OUTSTANDING AMOUNT ADVANCED TO THE DESIGNATED ACCOUNT (1 - 2) 4 BALANCE OF DESIGNATED ACCOUNT PER ATTACHED BANK RECONCILIATION STATEMENT AS OF DATE ______________________ 5 PLUS: TOTAL AMOUNT CLAIMED IN THIS APPLICATION NO. _______________ 6 PLUS: TOTAL AMOUNT WITHDRAWN AND NOT YET CLAIMED REASON: _____________________________________________ 7 PLUS: AMOUNTS CLAIMED IN PREVIOUS APPLICATIONS NOT YET CREDITED AT DATE OF BANK STATEMENTS APPLICATION NO. WA # XXX WA # XX SUBTOTAL OF PREVIOUS APPLICATIONS NOT YET CREDITED 8 LESS: INTEREST EARNED 9 TOTAL ADVANCE ACCOUNTED FOR (NO. 4 THROUGH NO. 9) 10 DIFFERENCE (3 - 9) 11 EXPLANATION OF ANY DIFFERENCE SHOWN IN LINE 10 _________________________________________________________________________________________________________________________________ DATE: __________________________ SIGNATURE: ______________ TITLE: ____________________